Page 303 - DMGT509_RURAL MARKETING

Rural Marketing

Notes exports. Quarantine, both of exports and imports, will be given particular attention so that
Indian agriculture is protected from the ingress of exotic pests and diseases.
In order to protect the interest of farmers in context of removal of Quantitative Restrictions,
continuous monitoring of international prices will be undertaken and appropriate tariffs
protection will be provided. Import duties on manufactured commodities used in
agriculture will be rationalized. The domestic agricultural market will be liberalized and
all controls and regulations hindering increase in farmers’ income will be reviewed and
abolished to ensure that agriculturists receive prices commensurate with their efforts, and
investment. Restrictions on the movement of agricultural commodities throughout the
country will be progressively dismantled.
The structure of taxes on food grains and other commercial crops will be reviewed and
rationalized. Similarly, the excise duty on materials such as farm machinery and
implements, fertilizers, etc., used as inputs in agricultural production, and post harvest
storage and processing will be reviewed. Appropriate measures will be adopted to ensure
that agriculturists by and large remain outside the regulatory and tax collection systems.
Farmers will be exempted from payment of capital gains tax on compulsory acquisition of
agricultural land.
The Agriculture sector has been starved of capital. There has been a decline in the public
sector investment in the agriculture sector. Public investment for narrowing regional
imbalances, accelerating development of supportive infrastructure for agriculture and
rural development particularly rural connectivity will be stepped up. A time-bound strategy
for rationalisation and transparent pricing of inputs will be formulated to encourage
judicious input use and to generate resources for agriculture. Input subsidy reforms will
be pursued as a combination of price and institutional reforms to cut down costs of these
inputs for agriculture. Resource allocation regime will be reviewed with a view to
re-channelizing the available resources from support measures towards asset formation
in rural sector.
A conducive climate will be created through a favourable price and trade regime to
promote farmers’ own investments as also investments by industries producing inputs
for agriculture and agro based industries. Private sector investments in agriculture will
also be encouraged more particularly in areas like agricultural research, human resource
development and post-harvest management and marketing.
Rural electrification will be given a high priority as a prime mover for agricultural
development. The quality and availability of electricity supply will be improved and the
demand of the agriculture sector will be met adequately in a reliable and cost effective
manner. The use of new and renewable sources of energy for irrigation and other
agricultural purposes will also be encouraged.

Bridging the gap between irrigation potential created and utilized, completion of all
ongoing projects, restoration and modernization of irrigation infrastructure including
drainage, evolving and implementing an integrated plan of augmentation and management
of national water resources will receive special attention for augmenting the availability
and use of irrigation water.
Emphasis will be laid on development of marketing infrastructure and techniques of
preservation, storage and transportation with a view to reducing post-harvest losses and
ensuring a better return to the grower. The weekly periodic markets under the direct
control of panchayat raj institutions will be upgraded and strengthened. Direct marketing
and pledge financing will be promoted. Producer’s markets on the lines of Ryatu Bazars
will be encouraged throughout the width and the breadth of the country. Storage facilities
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